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Microsoft and Activision Blizzard are exploring a restructured version of their proposed $75bn tie-up in a move that could trigger a fresh UK antitrust probe, according to the regulator that last month blocked the original deal. The Competition and Markets Authority said on Wednesday that the only way to return to the negotiating table would be to start from scratch with a new deal.
People close to the deal have suggested a divestiture could be a possible solution, but it is unclear what assets Microsoft would be willing to lose. Nonetheless, the proposed deadline for the deal closing on July 18 is unlikely to be met. Microsoft could pay a break fee of as much as $3bn if it falls apart.
The CMA and the companies involved have requested a stay in legal proceedings after the parties were due to appear in the UK's appeal court at the end of the month to challenge the decision. However, the court has to approve the request, and the FTC may still appeal against Tuesday's ruling by the US judge.
One person familiar with the negotiations suggested that the CMA and the companies would now enter a three-month period of talks. The person said there was a period of time "to discuss what the CMA really wants", adding that it was "way too early to speculate what's on the table".
The discussions over a new deal were instigated by Microsoft, according to one person familiar with the talks. A former CMA lawyer said it was unusual for companies to bring a reconstituted deal in front of the regulator to begin the process again.
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